US stocks halt their slide after the Treasury Department moves to ease pressure from the bond market
Coeur d'Alene Press | UPDATED 1 month AGO
NEW YORK (AP) — U.S. stocks rose after the Treasury Department made a move to ease pressure emanating from the bond market. Strong profit reports for the spring from Target and other U.S. companies also helped support the stock market Wednesday. The S&P 500 rose 0.2% for its first gain in four days after setting its all-time high last week. The Dow Jones Industrial Average added 0.2%, and the Nasdaq composite gained 0.2%. Yields sank in the bond market after the Treasury Department said it will at least double the size of its purchases of longer-term Treasurys. Yields had been climbing on inflation worries and other concerns.
THIS IS A BREAKING NEWS UPDATE. AP’s earlier story follows below.
NEW YORK (AP) — U.S. stocks are ticking higher Wednesday after the U.S. Treasury Department said it will buy more U.S. government bonds in a move that eased pressure on financial markets worldwide. Strong profit reports for the spring from Estee Lauder, Target and other U.S. companies are also helping to support the stock market.
The S&P 500 rose 0.3% and is on track for its first gain in four days after setting its all-time high last week. The Dow Jones Industrial Average was up 133 points, or 0.3%, as of 2:30 p.m. Eastern time, and the Nasdaq composite was up 0.2%.
The stock market has been under growing strain as worries about inflation, big government debts and other factors drive Treasury yields higher in the bond market. That ultimately makes borrowing money more expensive for everyone, which slows the economy and undercuts prices for stocks and other investments.
But Treasury yields fell in the morning after the U.S. Treasury Department said it will at least double the size of its planned purchases of longer-term Treasurys from Sept. 9 through Nov. 4. The department said it’s doing so “to provide greater liquidity support in longer-dated nominal sectors where there is consistent strong sponsorship from market participants.”